London based business rescue and insolvency specialists were appointed administrators to London based SAG Solar UK Limited ("SAG UK") on 29 January 2014. SAG UK has built 3 solar parks in the UK at Ayshford Court Farm in Devon, Ford Farm in Cornwall and Wymeswold in Leicestershire, the latter being the largest solar park built in the UK so far. SAG UK ran into difficulty when the sale of Ford Farm was delayed by problems getting Ofgem accreditation. Joint Administrator Andrew McTear said "we are working hard together with the key creditors to get to the bottom of the complex contractual arrangements at Ford Farm so we can complete the sale successfully."
"As for the solar farm industry generally it seems likely that there will be more solar farm administrations in the UK as the cash flows of these projects are very chunky and any delay in selling the completed projects to investors can cause untold difficulties. Also the industry is very cyclical around the 31 March reduction in Renewable Obligation Certificates rates which causes a bottleneck which can catch solar park contractors out. Watch out for more solar park insolvencies in the second quarter of 2014 as solar park constructors reassess their finances" said a spokesman from McTear Williams & Wood.
10 February 2014